Investor Behavior towards Commodity Market - with Reference to Karimnagar District, Telangana State

In Modern days, the field of investment is becoming more dynamic than olden days. International and National factors are growing rapidly that change the values of specific Investments (assets). The number investment alternatives have been increasing due to the changes in Global conditions. To become successful, Investor has to keep large amount of savings in diversified portfolio and Invest wisely. Risk and return are the two sides of Investment, so one should try to analyze how much risk intended to take and how much return intended to generate. While making Investment decisions investor must have enough financial knowledge. Among the various investment options, investing in commodities can be an important alternative to diversify a portfolio beyond traditional securities. Many of the investors are still not in favor of investing in commodities. The Current study examines the Investor’s awareness and perception towards commodity market. Descriptive research design is selected to study. Using a convenience sampling approach, a total of 68 customers were interviewed at select stock broking in select areas of Karimnagar district of Telangana state.It is identified and concluded that most of the Investors in commodity market are satisfied with commodity trading and having a positive attitude towards commodity market. It is found that prices of commodities are affected by various factors such as national and International i.e. Interest Rates, Crude Oil price, American Dollar’s Price, Economical and Political conditions. Further it is found from the study that majority of the respondents strongly Prefer to invest in the commodity Crude Oil, Gold, Silver, Natural Gas, Aluminum and Least Preferred Commodities are Zinc, Copper, Lead. Investments in commodity trading are increasing nowadays in metro and urban area.